2000 (7) TMI 920 - SUPREME COURT

Whether the contract envisages actual payment or not?

Held that:- Appeal partly allowed. The High Court directed the Board to discharge its obligation under the contractual provisions. It was noticed that earlier the Board had made payment to the contractor for enhanced wages from 1st April, 1983 to 31st December, 1984. Under the circumstances, declining to accept the second contention, we refrain from interfering with the directions for payment given in the impugned judgment except in respect of the rate of interest awarded by the High Court.

The High Court has directed the Board to pay to the contractor the amounts shown in the Statement EX.P-20 alongwith interest @ 18% per annum. Having considered the totality of the circumstances, we feel that it would be just and proper to award interest @ 9% per annum instead of 18%. In the statement EX.P-20, the contractor has calculated interest @ 18% per annum. The interest amount would now be calculated at 9% instead of 18% per annum. The impugned judgment of the High Court is modified accordingly.